Q: Good morning team,
Not a good morning for Arc shareholders but ,I feel that the market's reaction is overdone.Analyst's price target is still 31$,and with patience the Attache issue should be resolved.WHat are your thoughts,is this a buying opportunity for those who are patient?
many thanks,
Jean
Not a good morning for Arc shareholders but ,I feel that the market's reaction is overdone.Analyst's price target is still 31$,and with patience the Attache issue should be resolved.WHat are your thoughts,is this a buying opportunity for those who are patient?
many thanks,
Jean
5i Research Answer:
We would agree, but some patience indeed may be required. But the stock is very cheap, the balance sheet is fine, the dividend is attractive and likely secure, and Q4 production did in fact beat estimates. Attache could be resolved, sentiment could change, or commodity prices could move the stock. We do not think this issue is a disaster. Negative yes, but recoverable.